Leasing and value creation strategy amidst challenging office market
70 York Street, a 210,000 square foot Class ‘A’ office building in Toronto’s financial core, was sold to Desjardins Global Asset Management in an off-market transaction. KingSett’s involvement with the asset highlights the firm’s ability to execute a leasing and value creation strategy amidst a challenging office market, while underscoring the resilience of well-located office assets. We are pleased to have facilitated a transaction that adds a premier office asset to Desjardins’ portfolio at a time when return-to-office mandates are strengthening and office leasing activity continues to gain momentum.
In March 2024, the KingSett Senior Mortgage Fund LP assumed control of the downtown office tower after the borrower foreclosed on the property. At the time, the 17-storey building was 48% leased, having faced leasing disruption following the departure of a major tenant. Immediately following the ownership transition, KingSett’s Asset Management team implemented a comprehensive asset stabilization strategy, including an asset assessment to identify value creation opportunities and a targeted leasing program featuring “Ready Set Go” furnished model suites with flexible lease terms that cater to tenants requiring smaller spaces.
Through our active asset management approach, the team completed 78,000 square feet of new leasing and 24,000 square feet of renewals by November 2025, increasing occupancy to 90%.
This outcome reflects KingSett’s platform strength and its ability to navigate complex situations. Leveraging deep asset management expertise, the team developed and executed a targeted strategy to stabilize a challenged asset within the lending portfolio. KingSett continues to hold strong conviction in assets with compelling fundamentals, and we’re pleased to have delivered a successful outcome for all parties.
